viewCello Health PLC

Cello Health grows interim profits and eyes further acquisitions

Chief executive Mark Scott said strong growth was notable in the US market and that Health Communications and Health Consulting “made particularly pleasing progress”

Cello Health PLC technology and expertise
Cello provides expertise spanning the pharmaceutical, biotechnology, diagnostics, equipment and consumer sectors

Cello Health PLC (LON:CLL) reported good growth in profits and strong cash flow for the first half of the year said it was confident about the rest of the year too.

The healthcare-focused advisory group delivered net revenue of £54.5mln for the first six months of the year, which was up 6.8% on a year ago, with like-for-like constant currency net revenue up 4.5%.

WATCH: Cello Health reports good growth in profits and strong cash flow

Of the group’s two divisions, Health provided the bulk of growth, with revenue up 11.6% and like-for-likes of 8.2%, while Signal, which is historically second-half-weighted, was pretty much flat on a net revenue basis, with like-for-likes down 1%.

Chief executive Mark Scott said strong growth was notable in the US market and that Cello Health Communications and Cello Health Consulting “made particularly pleasing progress”.

The August acquisition of Innovative Science Solutions, a US-based scientific consulting firm specialising in strategic counsel and regulatory support, will help contribute to this momentum, Scott added, highlighting the critical regulatory expertise ISS has added.

Underlying profit before tax and earnings per share for the first half were both up 12.7% to £5.7mln and 4.08p respectively, with PBT and EPS rising 40% on a statutory basis.

Keeping up its unbroken 13-year progressive dividend history, the interim payout was lifted 4.5% to 1.15p per share.

On the outlook, the company said trading had continued to be good over the summer, further acquisitions being appraised and good revenue visibility "gives us confidence for a strong full year outcome”.

Cello shares were up 1.6% to 125p on Wednesday morning.

Quick facts: Cello Health PLC

Price: 161 GBX

Market: AIM
Market Cap: £178.84 m

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